November 03, 2020, by Canadian Press
RioCan Real Estate Investment Trust’s veteran CEO said that the demand for space in prime office towers and shopping malls has plunged because the pandemic suddenly turned them into places that customers and tenants “don’t even want to go to.”
“Unfortunately … everything that was accepted wisdom in the real estate business only eight months ago has been turned on its head, even in the face of record low interest rates and massive government spending,” Edward Sonshine told analysts on a conference call.
Another formerly “bulletproof” segment of the industry — multi-unit residential rental properties — is also being questioned due to government freezes on rents and evictions, Sonshine said.
An exception to the gloom, Sonshine said, has been strong demand for new condo developments and single-family residences.
Sonshine said RioCan fared better during the third quarter than he expected.
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